Extra charges on residents paying for council services with credit cards have been slammed as "scandalous".

South Cambridgeshire District Council was named one of the country's 'worst offenders' for imposing the fees on people paying their bills with credit cards.

According to an investigation by the Times, airlines, ticket booking websites, universities and councils have made millions of pounds through the practice in recent years.

Residents paying their council bills must pay an 2.5 per cent fee when paying South Cambridgeshire District Council by credit card. The council argues the fee is used only to cover payment processing costs.

It joins other councils in Ealing and West Dorset and some travel agents in charging customers at this rate. It is even higher than airline Ryanair, which imposes a two per cent fee.

Companies will be stopped from charging you extra for using your card

Cllr Bridget Smith, leader of the Liberal Democrat opposition group, said: "It is scandalous that our council is involved in ripping off its own residents. South Cambs is charging more than Ryanair to use a credit card.

"We are calling for an immediate end to this practice in South Cambs, rather that waiting for the ban to be introduced. Our residents have been let down by the council."

A spokesman for the council said: "We provide a range of ways to pay bills so customers can avoid using credit cards. Furthermore, we fully inform customers of any charges which may be applied before they pay."

He explained that credit card payments are processed by Capita, with the fee the council charges customers used to cover costs.

The council received £15,843 in charges in the 2016-17 financial year and paid £15,140 to process those payments.

Read More

The spokesman added: "The aim is to break even on the credit card charges but as different types of credit card charge a different percentage, it will be slightly up or down each year depending on the types of card used.

"However, we would urge as many customers as possible to use direct debit - our preferred method of receiving payment. Over 75 per cent of our customers already do - it is efficient, secure and easy to refund if required."

Extra charges on payments for good and services by card are due to be "outlawed" by the Government from January 2018.

According to the Treasury, in 2010, the total value of surcharges for debit and credit cards was an estimated £473 million.

The economic secretary to the Treasury, Stephen Barclay, said: "Rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end.

"This is about fairness and transparency, and so from next year there will be no more nasty surprises for people at the check-out just for using a card.

"These small charges can really add up and this change will mean shoppers across the country have that bit of extra cash to spend on the things that matter to them."

Cllr Philippa Hart, Lib Dem spokesperson for finance on South Cambridgeshire District Council, said: "It is usually the least well off who have to resort to credit cards to pay bills when things are tight.

"Forcing people to pay extortionate fees just to pay their council tax is a form of exploitation."